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Yesterday, President Trump announced another update on the Mexico-Canada tariffs, apparently pausing new tariffs until at least April 2. However, other statements from the Administration said tariffs on Mexico and Canada are still expected to take effect on March 4, indicating Trump is still reviewing the progress. Confusion remains with Trump stating “I have to tell you that, you know, on April 2, I was going to do it on April 1, But I’m a little superstitious, I made it April 2, the tariffs go on. Not all of them but a lot of them.” Today, he announced that tariffs will go ahead as planned on March 4, along with additional tariffs on China. With the initial comments on the pause to April 2, Canadian and Mexican currency moved upwards in response. Canadian Innovation Minister Francois-Phillipe Champagne advised Canada would wait for signed executive orders and stated “Our mission is still to avoid the tariffs, extend the suspension if we need to….there will be a targeted, strategic but a firm response” should tariffs be imposed. Mexico’s Economy Minister Marcelo Ebrard will meet on Thursday with USTR Jamieson Greer and Commerce Secretary Howard Lutnick on Friday.
Newly confirmed USTR Jamieson Greer has stated the USMCA is top of his list and he is anxious to renegotiate the agreement to make sure other countries, primarily China, are not using Mexico as an interim stop to avoid tariffs on Chinese products.
Trump continues to discuss early April for imposing reciprocal tariffs and has stated “we have made decisions, and we’ll be announcing it very soon, and it’ll be 25%, generally speaking, and that’ll be on cars, and all of these things”. However, this is confusing as well as the American First Trade Policy Memorandum initiates investigations of trade practices, a public comment period and a report that is due on April 1. The report in theory would result in recommendations and then potential actions.
We will keep updates as any developments come to light.
*Source: Reuters *Photo Source: Manufacturing Today
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